VARA launches crypto update Rulebook 2.0 in Dubai
Dubai's crypto regulatory organization VARA (Virtual Assets Regulatory Authority) has released a major crypto update for digital asset companies. VARA has released Version 2.0 of its Rulebook, which will be mandatory for all licensed companies to adopt by 19 June 2025. The main objective of this update is to increase market transparency and strengthen risk management.
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Let's know the important aspects of this new rulebook and what impact it will have on the crypto industry.30 days transition period: Time given to follow the rule VARA announced on 19 May that all VASPs (Virtual Asset Service Providers) have been given 30 days to adapt themselves to the new rules. This means that all companies will have to work fully according to these rules by 19 June 2025.
This is in line with global regulatory standards to ensure that all companies follow the rules in a timely and correct manner.
What has changed in the new rules?Several important changes have been made in Rulebook Version 2.0:Strict leverage limits have been set for margin tradingToken distribution services have been clearly defined.Key definitions such as client assets, qualified custodian and collateral arrangement have been uniformed.Risk management and disclosure requirements have been clarified for all activities.The purpose of these changes is to ensure that all VASPs work to the same standards and there is no regulatory confusion.
Strict margin limits in crypto trading
In margin cryptocurrency trading, investors can make large deals with small capital, which increases both profits and losses. But this also increases the risk of market volatility. VARA has now reduced the leverage limit and has put pressure on companies to keep strict monitoring. Also, collateral standards have also been made strict, so that risk management can be done. If you want to know how to do Cryptocurrency Trading, then click on the given link.
New section for token distribution
VARA has added a separate section for token distribution in its new Rulebook 2.0, which is an important step towards making this sector more transparent and regulated. This section clearly states which licenses and permissions companies will need before issuing tokens. Along with this, priority has been given to investor security so that they can avoid any kind of fraud or misleading promotion. Restrictions have been imposed on marketing especially for retail investors, so that token offerings can be brought to the market in an ethical and responsible manner. The aim of this change is to ensure that crypto investments are transparent, secure and in line with regulatory standards.
Increased supervision and transparency for all services
VARA has made it clear that now the monitoring and rules have been strengthened for all major crypto-related services such as advisory, brokerage, custody, exchange, lending-borrowing, virtual asset management and virtual asset transfer and settlement. The aim of this move is to bring uniformity in these services and make it easier for companies to understand and follow the rules of various services simultaneously through cross-functional compliance. This will not only increase transparency but will also strengthen trust in the entire crypto system.